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What is a shortcoming of the profitability index? It can help identify the optimal combination of projects to undertake O Whe

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What is A short Coming of Profitability Index?
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With multiple resource constraints, the profitability index can break down completely.
A major disadvantage of profitability index is that it may lead to incorrect decision when comparing mutually exclusive projects. These are a set of projects for which at most one will be accepted, the most profitable one. Decisions made out of profitability index do not show which of the mutually exclusive projects has a shorter return duration. This leads to choosing a project with longer return duration.
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